Western Digital Corporation (WDC)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,879,000 | 2,023,000 | 2,327,000 | 3,370,000 | 3,048,000 |
| Short-term investments | US$ in thousands | — | — | 3,000 | 1,586,000 | 1,875,000 |
| Receivables | US$ in thousands | 2,170,000 | 1,598,000 | 2,804,000 | 2,257,000 | 2,379,000 |
| Total current liabilities | US$ in thousands | 6,087,000 | 5,434,000 | 5,237,000 | 4,870,000 | 4,406,000 |
| Quick ratio | 0.67 | 0.67 | 0.98 | 1.48 | 1.66 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,879,000K
+ $—K
+ $2,170,000K)
÷ $6,087,000K
= 0.67
The quick ratio of Western Digital Corporation has shown a declining trend over the past five years, starting at 1.66 in June 30, 2020, and decreasing to 0.67 as of June 30, 2023, and June 30, 2024. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets. The significant drop in the quick ratio from 1.48 in June 30, 2021, to 0.67 in June 30, 2023, raises concerns about the company's liquidity position and ability to cover immediate liabilities. Further analysis of Western Digital's current assets and current liabilities is recommended to better understand the reasons behind the decreasing quick ratio and its potential impact on the company's financial health.
Peer comparison
Jun 30, 2024